Water System Extension Ownership, Dedication, and Maintenance Responsibility, including Maintenance Bond. (a) Acceptance and Conveyance of Water System Extension. Water System Extension completion shall occur on the date when the District reasonably determines that the Water System Extension improvements to the point of interconnection with the On-Site Distribution System improvements have been completed and are capable of providing the water service as required under this Agreement. Upon proper

Staff Report & Agenda Item Details

Water System Extension Ownership, Dedication, and Maintenance Responsibility, including Maintenance Bond. (a) Acceptance and Conveyance of Water System Extension. Water System Extension completion shall occur on the date when the District reasonably determines that the Water System Extension improvements to the point of interconnection with the On-Site Distribution System improvements have been completed and are capable of providing the water service as required under this Agreement. Upon proper completion of construction of the Water System Extension and final inspection thereof by the District, the Water System Extension improvements shall be dedicated to the District by an appropriate legal instrument approved by the District’s counsel. (b) Maintenance Responsibility, including Maintenance Bond. Upon acceptance of the facilities described in Section 6(a), the District shall thereafter own and maintain all Water System Extension improvements. Customer shall bear any costs of remediation or rehabilitation necessary to bring the Water System Extension improvements into compliance with all state, federal, and District standards before acceptance by the District. The District shall have reasonable discretion in determining when the Water System Extension improvements are acceptable. The Water System Extension improvements shall thereafter be owned and maintained by the District, provided, however, that Customer shall warrant the construction and suitability of the same for a period of two calendar years from District acceptance thereof and shall bear all costs of repairs and improvements during this warranty period. The two-year warranty required shall be secured with a maintenance bond provided to the District at Customer expense. Specifically, Customer agrees to provide to the District, or cause the contractor constructing the Water System Extension to provide, a Maintenance Bond in a form and from a surety acceptable to the District for all the Water System Extension. The Maintenance Bond shall provide for the repair of any defects in materials, equipment, or workmanship for the Water System Extension appearing within two (2) years from the date the Water System Extension is accepted by the District and shall be in an amount equal to fifteen percent (15%) of the total construction costs of the Water System Extension, as determined by the District’s consulting engineer. Nothing herein shall be construed as obligating the Customer to maintain the Water System Extension improvements following their completion, acceptance by the District, and expiration of the two-year warranty period. After acceptance by the District of the improvements described in Section 6(a), Customer’s maintenance obligations shall be limited to the On-Site Distribution System improvements, which begin at the discharge side of the meter(s). Following completion of the On-Site Distribution System improvements, Customer shall own, operate, and shall be solely responsible for the repair and maintenance of said On-Site Distribution System improvements and the District shall bear no liability for failure to supply the requested retail potable water service to Customer arising from failure of said On-Site Distribution Board Meeting Packet 06/03/2026 Crystal Clear SUD – Palomino Alpha NSSA System improvements to be maintained in a state capable of taking delivery of said retail potable water service.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 9.0/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.